Grab Holdings is temporarily increasing its fuel surcharge by 40 cents due to fuel price fluctuations while showcasing impressive financial growth, including a 21% rise in gross merchandise value and 14 consecutive quarters of adjusted EBIT growth. The company's market presence remains strong with over 46 million monthly transacting users and a solidified balance sheet, having issued a $1.5 billion zero coupon convertible senior note. Despite facing potential challenges related to market saturation and regulatory scrutiny of its gig workforce, Grab anticipates continued revenue growth of around 20% in both 2025 and 2026.
“Grab to temporarily raise fuel surcharge by 40 cents amid fuel price volatility”
“Grab Holdings last updated investors on July 31st, 2025 when it noted that it now has over 46 million monthly transacting users.”
“Furthermore, gross merchandise value on the platform accelerated to 21% year-over-year growth.”
“the company delivered its 14th consecutive quarter of adjusted EBIT DAB growth.”
“they also strengthened their balance sheet with a $1.5 billion zero coupon convertible senior note.”
“the financial services segment gives out loans and takes in deposits. And in the quarter, it gave out a lot more in loans and took in uh it took in a lot more in deposits, but not enough to offset the increase in loans.”
“the company expects the good performance to continue forecasting revenue growth for the fiscal year 2025 of about 21% at the midpoint with adjusted profitability coming in at 50% increase year-over-year.”
“I calculated a fair value for the stock. So I updated this cash flow uh forecast and valuation today and the value increased by $1.50... I now calculate the business to be worth $6.93.”
“Current market price is $5.3 signaling that it's undervalued using my proprietary DCF formula.”
“you would say that Grab has perhaps saturated 6 to 11% of their potential market.”
“since our last piece on Grab, shares of the company have appreciated 39% compared to 44% for the S&P 500.”
“But one thing to notice here is that competition in Indonesia is quite rough. And I was over there, I took this picture back in 2019 when I was talking to drivers for Go and Grab.”
